As Americans, our nation has been protected from the role of money as a commodity. Americans lived in a world where the dollar was the primary currency of exchange and stability throughout the second half of the 20th century. European citizens frequently travel to a neighboring country whose currency is completely different from theirs and where their own currency would not be accepted, and Americans traveling to Canada or Mexico could be almost sure that merchants would accept their dollars. As the first decade of the 21st century draws to a close, a shock could be in store for Americans. The US dollar may no longer be the primary currency in the world and may no longer be such a desired currency. Many people wonder how and why a currency increases or decreases in value; the effects must be taken into account when looking at the gold standard. Money, although often considered simply a medium of exchange, has its own value and is also a commodity, in the same way that oil, gold, silver or corn are commodities (Feiler, Schilling ). The price of silver as a commodity is often determined or fixed as a result of government action and international trade. The value is determined by the world's foreign exchange markets. Exchange rates also have a lot to do with it, for example; Exchange rates respond directly to all kinds of events, both tangible and psychological: economic cycles; balance of payments statistics; political developments; new tax laws; stock market news; inflationary expectations; international investment models; and government and central bank policies, among others. (Federal) At the heart of this complex market are the same forces of demand and supply that determine the prices of goods and services in any free market. If, at a given rate, the demand for a currency is greater than its supply, its price will increase. If supply exceeds demand, the price will fall (Federal Bank of New York). Foreign exchange trading can take place on a stock exchange, such as that of the Chicago Board of Trade. the major banks of each major country, such as the Bank of London, the Federal Reserve Bank of New York and the Bank of Tokyo, which help to exchange one currency for another and, through their purchases of foreign currency "reserves", help to set the “price” of all currencies.